Residential Real Estate Litigation
Closing Issues In Tennessee Real Estate
Closing issues in Tennessee real estate can cause delays, legal disputes, and unexpected costs. Sam Cross Law helps homeowners resolve closing complications and protect their rights.
Closing Dispute Resolution
Purchase and Sale Agreement Complications
Closing issues in Tennessee real estate can turn a simple transaction into a legal headache. Whether you’re the buyer or seller, closing complications can lead to delays, disputes, and financial risk. At Sam Cross Law, we help clients understand and resolve closing issues in Tennessee Real Estate—before they escalate into costly litigation. From title defects to last-minute contract changes, closing disputes can arise for many reasons. Knowing your rights, your options, and the best next steps can make all the difference.
Buying or selling an existing home can involve unexpected closing issues in Tennessee real estate—whether it’s a failed contingency, a boundary dispute, or a last-minute change in the deal. Below are common questions Sam Cross Law hears from clients facing closing complications in residential real estate transactions.
• Can Someone Cancel a Home Sale Contract?
Either party—buyer or seller—may attempt to cancel a contract before closing, but whether they can legally do so without consequence depends on the specific terms of the agreement. Tennessee law allows cancellation in certain situations, such as failure to meet contingencies. Sam Cross Law helps both buyers and sellers understand their rights, evaluate risk, and negotiate solutions when a deal is in jeopardy.
• What Are Home Purchase and Sale Agreement Contingencies?
Contingencies protect both parties by allowing cancellation under specific conditions. Common contingencies include financing, appraisal, and inspection clauses—but there may be others depending on the contract. Sam Cross Law reviews contracts to ensure clients understand what contingencies apply, what deadlines must be met, and how to protect their rights.
• What Happens If a Buyer Doesn’t Get Approved for Their Mortgage?
Whether a buyer can cancel a contract for lack of financing depends on the terms of the agreement. Many Tennessee Association of Realtors contracts include a financial contingency, but strict deadlines and requirements apply. Buyers must comply with these terms—such as applying for financing within a certain timeframe and providing proof of loan denial. Sam Cross Law can help interpret these provisions and protect clients from losing their earnest money.
• Can I Back Out of a Contract If I Found a Problem During the Home Inspection?
It depends on the contract’s inspection provisions. Many Tennessee Association of Realtors purchase agreements include an inspection period, a resolution period, and a final inspection before closing. Buyers may also have rights under fraud or fraudulent concealment if the seller withheld known defects. Sam Cross Law helps clients navigate inspection-related disputes and protect their interests.
• What Should I Know About Encroachments, Easements, and Boundary Line Issues?
Boundary disputes, easements, and encroachments can cause major closing complications. Buyers should review the title commitment and survey carefully, and understand how title insurance may or may not cover certain issues. Sam Cross Law helps clients assess these risks before closing and resolve disputes when they arise.
• Can the Closing Be Delayed If the Seller Doesn’t Finish Repairs or Agreed Work?
If a seller agrees to complete repairs before closing but fails to do so, buyers may have legal options—however the contract will usually provide a mandatory course of action if no action is taken by the buyer. So both the buyer and seller should be aware of what those consequences are and not just rely on the agents to "work it out." Sam Cross Law reviews contract language and helps clients assert their rights when sellers don’t fulfill their obligations.
Closing issues in new construction often involve different risks—like builder performance, financing loopholes, and incomplete work at the time of sale. Sam Cross Law helps buyers understand the legal and practical differences between building on your own land versus buying a newly built home from a developer.
• What’s the Difference Between Buying Land and Hiring a Builder vs. Buying a Finished Home?
When you hire a builder to construct a home on your land, you control the project—but also assume more risk for construction problems. In contrast, when you buy a newly constructed home from a developer at closing, the builder typically dictates the details, and buyers have limited say. Sam Cross Law helps clients understand the legal differences and what rights they have in each situation.
• Can the Seller and Builder Be Different People or Entities for New Construction?
Yes. In some cases, the seller is a developer or financier, while the builder is a separate entity. This can create a complex web of relationships—and limit the buyer’s ability to hold the builder directly responsible for issues. Sam Cross Law helps clients navigate these layered contracts and understand who is responsible for what.
• What Should I Know About Financing Contingencies in New Construction Agreements?
Many buyers assume they have a broad financial contingency—but new construction contracts often narrow this protection. Some agreements require buyers to apply for financing within a few days, and once they obtain pre-approval, the contingency is satisfied—leaving no right to cancel later. Sam Cross Law helps clients understand these traps and protect their financial interests.
• What Happens If the Builder Isn’t Following My Instructions?
Whether you have control over the build depends on the contract. For custom homes built on your land, you typically have more say—but many builder agreements limit your ability to make changes or require advance payment for upgrades, which may be forfeited if you cancel. When buying a spec home at closing, buyers often have no say at all. Sam Cross Law helps clients understand these differences and negotiate fair terms.
• What’s the Difference Between Earnest Money and a Down Payment in New Construction?
Some builders minimize the earnest money amount while collecting a larger “down payment” that is non-refundable. This money often goes directly into the builder’s operating account and may not be returned even if the buyer cancels the contract for a legitimate reason. Sam Cross Law helps clients understand these provisions, negotiate fairer terms, and avoid losing substantial sums of money.
• Can I Delay Closing If the Builder Hasn’t Finished the Home?
Do I Need An Initial Consultation
Closing issues in Tennessee real estate transactions can be complex, time-sensitive, and costly. At Sam Cross Law, we help clients navigate these challenges by providing clear legal guidance and practical solutions—whether you’re a buyer, a seller, or a party to a new construction contract.
During your initial consultation, we will:
- Review your purchase agreement, closing documents, and any related correspondence
- Explain your rights, obligations, and potential risks under Tennessee law
- Advise you on your options—whether that means negotiating with the other party, delaying closing, or enforcing your rights through legal action
Every situation is unique, but the goal is the same: to protect your time, money, and property by helping you make informed decisions. Our flat-fee consultation provides an affordable, no-obligation opportunity to understand your legal position before taking further steps.
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Sam Cross is a Franklin, Tennessee real estate attorney who focuses his practice on protecting the rights of homeowners in disputes involving home purchases, construction defects, property disclosures, and HOA matters. To learn more, schedule an initial consultation by clicking the button below.